Three companies I regularly cover, Kraken Robotics, Emerge Commerce and Progressive Planet are all out with financials since yesterday’s close. The 2026 Wolf Pick will take priority.
Selected at $0.29 back in mid December, the stock is currently up 31% from that selection, and has bounced nicely out of my recently identified Buy Zone.
The five plus months since we had a chance to last look at their Q3 financials has felt like an eternity. Those financials received a 3.5 star rating, which was aptly named “Shut up and take my money”. I’ve attached it below for your perusal should you choose.
Progressive Planet ($PLAN.V) FINS Review
It’s always an exciting time when one of my annual Wolf Picks reports earnings.
It’s hard to imagine a better headline after that long wait than this one:
With plenty of reviews to write over the next ten days or so, let’s get into it and see if the meat and potatoes are worthy of the headline.
Balance Sheet:
PLAN ended the year with a healthy current ratio of two, which consisted of $2.25M in cash, $1.8M in receivables. $2.4M worth of inventory and $400k in prepaids against $3.3M in liability commitments over their next twelve months.
We already know that they had a record sales year and with inventory down 7% YOY signals increased efficiency and better inventory turnover.
No issues identified within their A/R aging report which looks pretty stellar at 86% current, and the majority of ones slipping are under 30 days past due.
Progressive Planet has $5.6M of debt, the vast majority under a 23 year mortgage with BDC at 5.05% interest. This replaced a BMO revolving demand loan therefore this change offers them more flexibility.
No surprises. That’s always nice.
Cash Flow:
The total OCF for the year of $3.5M is down 31% from the $5.1M they generated in 2025 and that might raise an eyebrow.
That variance however is mainly due to working capital adjustments related to timing of grant income received and unrelated to the day to day operations of the business. Prior to working capital adjustments, PLAN’s OCF improved by 13%.
Their fiscal 2026 was a big year on the investment side of the business. Over $5M was utilized for automation equipment for their legacy business in addition to building improvements for their PozGlass pilot plant.
During the year they also invested $650k in an unnamed public company, after similar investments of $400k last year for which they recorded minor gains for over the last two years. Post financials, it appears they sold their stake in these companies for a loss of $117k. Let’s focus on the business Steve and leave the trading of stocks to me.
PLAN reduced their overall debt by $764k and received a little over $100k from exercised options during the year.
Overall, their cash position depleted by 59% due to their capex.
Share Capital:
110.3M shares outstanding. 2.2M less shares than two years ago through share buy backs - all of which occurred in their previous fiscal year with the stock in the ten cent range
6M options outstanding - all ITM.
31% insider ownership with a minor stake from one institution.
In a very surprising move a significant amount of options that were well ITM went unexercised in the last few months.
Income Statement:
I spoiled it with the news release headline but Progressive Planet ended 2026 with record revenue of $23.2M, up 19% from a year ago. Gross margins also improved by an incredible 470 basis points to 35.8%. This combined to drive gross profit dollars up 37% on 19% more revenue. Much of the improvement is due to lower amortization costs on equipment, but we’ll take it anyway we can get it.
Operating expenses grew by 55%, highly impacted by a one time slotting fee in Q3 which impacted Advertising costs which rose by 90% on the year.
R&D costs stemming from their PozGlass pilot rose significantly as well to $1.56M vs only $319k a year ago which included significant Q4 spend.
Earlier this year the company also impaired an exploration asset for a total of $1.2M.
Even after those one time hits to the P&L, they still finished ahead of last year on the Income before taxes line, $1.42M vs $1.23M.
Sadly below that they paid $384k in taxes vs a tax recovery of $443k last year. That took their net income to $1.04M vs $1.67M.
Unfortunately the company doesn’t provide a detailed accounting of their Q4, but revenue was up by 12% in the quarte and the company suffered a net loss of $172k, in large part due to $650k in R&D spending for their PozGlass pilot plant.
Summary:
Overall, you would have to call 2026 a pretty successful year for Progressive Planet. Unfortunately their P&L suffered a couple of one time hits, significant R&D spending and additional taxation which makes their bottom line look rather unsexy when compared to a year ago.
As PLAN moves into 2027, they will have the full benefit of their new robotic palletizers which should increase efficiencies and deliver some operational leverage. The slotting fee paid to Tractor Supply will continue to pay dividends throughout the year also.
The company is also extremely close on the commissioning of their new pilot plant for PozGlass. Investors should get the latest update on that initiative when they have their “earnings call” with Radius Research on September 9th, which I’ll sadly miss due to vacation. I’m also hoping we will get a better understanding of what their additional capex targets and R&D spending are for next year.
Due to the one time items the company is going to look more expensive on profitability metrics. The slotting fee and asset write off amount to more than $1.5M which would have taken their 2026 net income to about $2.6M.
All of that only discusses their current legacy businesses and doesn’t factor in the future with PozGlass and the potential there.
Early in trading the stock is pretty much trading sideways. We waited a long time for these financials but that won’t be the case for Q1 as that will be out by the end of September. I think that could be a better guide without these one time items.
Maintaining my 3.5 stars and my current position.